Young Sydneysiders whose livelihoods depend on the night-time economy say their income will be slashed if the city shuts down at 3am. Bar owners said it would make no sense for them to stay open after 3am last drinks.

''Keeping 15 to 20 staff on for four hours at double time-and-a-half on a Sunday morning becomes unaffordable when you can't sell a drink,'' said Tony Niutta, owner of the Burdekin Hotel on Oxford Street, which closes at about 6am.

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''We've never had an incident in 15 years. To work so hard and then be treated like a beer barn is not a good feeling.''

The neighbouring Exchange Hotel, which usually trades until 11am, predicted a loss of $20,000 a week and a hit to the 75 people it employs. ''It'll have a monumental impact for our security, bar staff, glassies and cleaners not to mention the promoters and musicians we indirectly employ,'' marketing manager Ben Young said.

''We have a crew of immigrant glassies that we look after, and for many of them the penalty rates are their only source of income.''

Jimmy Singline, owner of Goodgod Small Club on Liverpool Street, said many bar staff would have their shifts halved. He had spent almost four years building up a music venue that promoted late night entertainment over drinking.

''There needs to be some support for late-night venues and projects which are working to quell people's boredom,'' Mr Singline said. Fourteen DJs, event promoters, bartenders, musicians and owners of venues including Arq, the Abercrombie Hotel and The Spice Cellar met on Wednesday night to describe how their income would be affected by legislation that they believe unfairly punished everyone for the sins of a few. DJ Dave Stuart said half the gigs he performed were after 3am and he faced losing $300 a week. Graphic designer Nergal Youkhana, who migrated from New Zealand to design flyers for Sydney club nights, feared his business would go under.

Rebecca Alden from The Spice Cellar in Martin Place said the venue put on a range of diverse late-night events like live jazz, burlesque and European DJs. ''Our business model has been destroyed,'' she said.

Sydney's night-time economy contributed $15.1 billion to the economy in 2009 and represented 28.4 per cent of all jobs, the City of Sydney said. A 4000-strong Facebook group called Save Sydney Nightlife has scheduled a protest for this week.